A Beginner’s Guide to China Product Sourcing


插图1.jpgThere is a lot of information out there on sourcing products in China. The difficulty is knowing where to start. Having a plan before pursuing a business in China is the key if you want to avoid confusion and save money. This article will help you prepare for your product sourcing journey in China.

Finding a product

The best way to start is by looking at your current market and identifying gaps in supply or demand that need filling. For example, if there isn't any good service provider in your area who sells high-quality office chairs at an affordable price then maybe this could become something worth exploring further down the line (and potentially profitably).

Deciding on the right supplier

Finding supplier in China can be a daunting task, especially if you’re new to sourcing. One way of making sure that you find a good supplier is by looking at their track record and reputation.

The best way to do this is by asking other businesses that have worked with them in the past. You can also look at reviews on any online marketplace sites, such as Alibaba or Amazon. If there are any negative comments about the company, consider whether these could be an issue for your business—and if so, perhaps consider another supplier instead of risking problems later down the line.

How do I place an order?

Once you've selected a supplier, it's time to get down to business.

To place an order:

●     Review your selected suppliers' catalogues and product selections.

●     Decide which products you want to purchase and how much you want to buy for each type of product (quantity). Make sure that the amount meets your budget!

●     Specify whether you want samples from each supplier before placing an order for final production items (if so, select "Yes" next to the option asking if you'd like free samples).

Coping with language barriers

If you're dealing with a company in China, they will likely have an English-speaking representative on staff who can help you communicate with the supplier. However, this person may not always be available or be able to interpret every message. If your communication is sensitive and requires quick responses, it's best to find someone else who speaks Chinese fluently so that they can act as an interpreter for both parties involved.

If there is no one available who speaks both English and Chinese fluently, then consider using translation software such as Google Translate or Microsoft Translator (you can also use these programs on any website). Another option is to download one of many translation apps to your smartphone; most major brands offer such services for free! Finally—and perhaps most importantly—it's important not to underestimate the power of patience here: just because two people don't speak each other's language doesn't mean their ideas won't easily come across through body language and tone!

Another way is to find a product sourcing agent in China, who have no language barrier when communicating with factory and buyers. They can always help you to find suitable manufacturer in China and sort things out smoothly.

插图2.jpegDo they accept my payment method?

Payment methods can be broken down into the following categories:

●     Bank transfer (T/T)

●     PayPal

●     Credit card (VISA, MasterCard, JCB)

There are also a few other payment methods that you might encounter. These include Alipay or WeChat Pay.

Can they process an overseas purchase?

The process of paying for an overseas purchase is more complicated than making a payment in your own country. Most importantly, you need to make sure that the payment method you choose is supported by both the seller and their payment processor. Some sellers accept PayPal, but only if you’re purchasing from a website registered with them (and even then, there are sometimes restrictions).

Other sellers support Alipay or WeChat Pay — both Chinese-based mobile payment systems that can be used internationally as long as they're accepted by the merchant and their chosen processor.

The next step is selecting and verifying your currency conversion method: either wire transfer or credit card processing fees paid directly by cash or debit card (with no extra service fee). The latter two options tend to have higher rates than wire transfers due to a lack of competition among processors in China.

What are their terms of business?

Once you've narrowed down your list of potential suppliers, it's time to dig deeper. Look at their terms of business – what are their shipping policies? Do they have a minimum order quantity or value? What are their payment terms and delivery timescales? If any of these don't match up with what you're looking for, then it might be time to move on.

How do they ship?

Once you’ve found the items you want to sell, and the samples looks good. Then the next step is to buy product from China in bulk and find out the cost-effective way to arrange shipment.

Also, consider how long it takes for them to ship your goods once an order has been placed. You don’t want to wait too long for them if it means missing out on sales in the meantime!

When sending goods oversea, there are two main options: air freight or sea freight. Airfreight is typically faster than sea freight, but also more expensive due to the costs associated with transporting goods by plane rather than boat (or truck). If the ordering product quantity is not big enough for full container, LCL shipment is a good option to save money. Some companies may offer different rates depending on whether their products are shipped by air or sea: give us a call before placing an order so we can help make sure that what works best with your international shipment needs!

What’s the expected delivery time?

The first thing to look at when considering a supplier is the time it takes for them to deliver your products. It’s important to know whether you’re ordering something small and affordable, like a few keychains or t-shirts, or whether you need more than that—like tens of thousands of units of a whole range of items.

If it’s the former, then the delivery time won't be much different from what you'd expect if ordering from any other online store: 7-14 days depending on where in China they're located and how quickly your shipment can get through customs. If it's the latter though, then shipments can take up to six weeks or even longer for certain products (such as large machinery).

Is any import tax payable?

Once you order is shipped out, you may be required to pay import taxes. Import taxes are applied to goods as they enter a country, based on the value of the product. Many countries have different laws and regulations for importing products, so it’s important for importers to understand how these laws work.

Import taxes are typically paid by the importer directly when their goods are being cleared through customs at their destination port or airport.

插图3.jpgWhat's their quality control like?

As you're sure to know, quality control is an important part of any manufacturing process. The supplier can have the best equipment and workers in the world, but if their quality control process is lax or non-existent, your product's quality will be compromised.

For example: If a supplier doesn't check their products with x-ray machines before they ship them out, they could end up sending you faulty items that you'll have to throw away or return at a significant cost. It's also possible they'll send you something completely different than what you ordered—and that's never fun!

To ensure this doesn't happen with your China product sourcing business relationship, ask each potential supplier these questions:

●     How do they ensure quality control?

●     What is their quality control process? How does it work? Can it provide examples of how it works? What are its standards for measuring success in achieving QC objectives? This information will help ensure that any problems are resolved before the goods leave China so there's less risk of delays, extra costs from returns/exchanges/etc., and more time spent focused on growing revenue instead of dealing with problems caused by poor suppliers' practices such as subpar products being shipped out without inspection first.

And you can always hire a local QC to conduct China inspection.

What’s their returns policy?

Many of these details can be found in an emailed quote or contract between you and your supplier. However, if you are working with multiple suppliers at once—as most businesses do—then it is important to keep track of where each one stands on this issue so that all parties involved know where they stand when dealing with returns.

What happens if something goes wrong?

●     If your product is defective, you can contact the supplier to either replace or refund you. The time frame for this depends on the type of product and level of damage. For example, if you find a defect in an electronic device after using it for two months and the item is still under warranty (the supplier's period), they might be required by law to cover all or part of the shipping costs back to them.

●     If your shipment arrives late or is damaged in transit, contact both your supplier and shipping company immediately so they can initiate a claim with the carrier responsible for delivering the goods—this means uploading photos as evidence before filing a dispute through PayPal or another payment platform where applicable.

If there are any discrepancies about what was ordered versus what actually arrived, reach out directly to both parties involved: manufacturer first; then suppliers who sourced materials from that manufacturer; finally shipper who transported cargo across borders into China.

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